Intercorp Financial Services Inc. · NYSE:IFS
Intercorp Financial Services — Investor Day (June 2022)
120 slides from Intercorp Financial Services's investor day presentation, June 2022
Slide 1: Intercorp Financial Services Virtual Investor Day
Cl] intercorp . = . easy Financial Services i meee © VIRTUAL = INVESTOR DAY
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements This corporate presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this corporate presentation regarding IFS’ busin
Slide 3: Presenters
Luis Felipe Castellanos Michela Casassa Carlos Tori CEO IFS & Interbank CFO IFS & Interbank Retail Banking & Payments VP Interbank Víctor Cárcamo Bruno Ferreccio Gonzalo Basadre Commercial Banking VP Interbank CEO Inteligo CEO Interseguro
Slide 4: Building a leading digital financial platform
1 2 3 Building A distinctive Creating the a leading way of largest payments digital financial banking ecosystem platform 4 5 6 Trusted & Highly efficient The best profitable insurance financial player wealth business with for sustainable management focus on life & growth and advisor annuities profit
Slide 5: Building a leading digital financial platform
1 Building a leading digital financial platform
Slide 6: Empower all Peruvians to achieve their financial well-being
Empower all Peruvians to achieve their financial well-being
Slide 7: IFS businesses: bank, insurance, wealth, payments
Universal bank Insurance company with strategic focus on focused on retail life & annuities Advisory firm for the Pillar for building our emerging payments wealthy ecosystem
Slide 8: Our transformation path to a digitally-driven organization
Our transformation path to a digitally- driven organization Prior to 2014 2015 - 2018 2019 - 2021 2022 onwards 1 2 3 4 Store-centric Omnichannel Digital Two-tier model platform first digital strategy focused on physical with strong focus with growth to foster profitable convenience on building digit
Slide 9: Our two-tier digital strategy to foster profitable & sustainable growth
Our two-tier digital strategy to foster profitable & sustainable growth 1. Digitalization 2. Accelerated growth Focus on growing and allowing Focus on increasing velocity customers to fulfill their of new sources of revenues financial needs 100% digitally & sustainable profitability Digital Payments
Slide 10: Digitalization: building 100% digital solutions for the customer journey
Digitalization: building 100% digital solutions for the customer journey… Digital bank ERNI Digital Loyalty insurance program My finances Payments Piggy Digital Bank 100% digital financing account
Slide 11: Growing profitably and improving our NPS
… allowing us to grow profitably and improve our NPS… +55% +12 pts 5.6 49 3.6 37 2018 1Q22 2018 1Q22 Customers (mn) Digital NPS Digital NPS for Interbank
Slide 12: Reducing the number of financial stores
~40% May22 vs. 2016 … while reducing 290 the number of 177 financial stores 2016 May22 Financial stores
Slide 13: Accelerated growth: creating the largest payments ecosystem
Accelerated growth: focused on creating the largest payments ecosystem Customers Merchants Digital wallet Mobile P2P & P2MB payments network Merchant acquiring Pay everywhere, Grow your e-commerce & Credit & debit with your BNPL solutions business with cards mobile phone our solutions Merchant finan
Slide 14: We are increasing IT CAPEX
We are 1.5 x IBK IT CAPEX 2021 vs. 2015-19 avg. increasing IT Improve CAPEX customer Further improve analytical experience to ensure (UX) capabilities future growth Innovation in Strengthen digital products cybersecurity and services standards
Slide 15: Our tech strategy allows us to deliver value
+100 15-30 Agile squads Days x sprint Our tech strategy allows Aligned Multiple cloud, with business microservices & us to deliver value objectives APIs architecture with high standards of Simple Reliability and processes resilience cybersecurity Culture of World-class cybersecurity IT talent Techno
Slide 16: Our way of working will enable us to achieve our goals
Our way of working will enable us to achieve our goals Remote-first Increased productivity Global reach
Slide 17: ESG
We are positively impacting our stakeholders ESG Foster respect Responsible for the environment social practices Sustainability culture 53 CSA Score 2021 Reinforce corporate Encourage (Industry avg.: 38) governance, inclusion, equality transparency and diversity and ethics
Slide 18: Our aspiration
Our aspiration 1 2 3 Increase our customer Build a superior Become the base by leveraging customer leading digital data & analytics with experience based financial platform to our superior risk on operational solve customers’ management skills excellence needs +10 mn World-class N°1 player customers
Slide 19: A distinctive way of banking
2 A distinctive way of banking
Slide 20: We are side by side with Peruvians
We are side by side with Peruvians so they can reach their dreams, today
Slide 21: Interbank in numbers
Interbank in numbers 1.4 Earnings 23% MS consumer 10% MS commercial 21 % (S/ bn) loans banking ROE 43% C/I 4.7 Customers 65% Digital ratio (mn) customers As of December 31, 2021
Slide 22: Universal bank with strategic focus on retail & consumer finance
Retail Commercial Consumer Mortgage 52% 34% Universal bank Retail Retail with strategic Interbank System focus on Total gross loans retail & consumer finance 60% 51% Consumer Consumer Interbank System Retail gross loans Local GAAP as of March 31, 2022
Slide 23: Commercial banking
Commercial banking Retail banking Data & analytics
Slide 24: Commercial banking
Commercial banking Retail banking Data & analytics
Slide 25: Commercial banking key products
51% 17% Agribusiness Corporate & fishing Diversified & profitable Corporate Industry Construction portfolio with Mid-sized Agribusiness & fishing Mining SME Commerce Other By segments By industries focus on key product & 10% MS loans Cash management Key products industries Key figures 20 Loans Trade
Slide 26: Our value proposition for commercial banking clients
Customer oriented digital solutions Long lasting Our value customer relationship proposition for commercial Expertise in banking clients relevant sectors Fast decision making process
Slide 27: Growing our customer base digitally with improving NPS
Growing our customer base digitally with improving NPS 132 41% 51 33 54 14% 2018 1Q22 2018 1Q22 2018 1Q22 2.4x 2.9x 1.5x Customers (th) Digital customers (%) NPS (points)
Slide 28: Ecosystem business model to drive growth
Payroll Ecosystem Supply chain finance Corporate Mid-sized Merchant financing business model SME to drive growth and create value Sustainable for customers loans Digital Data & Intercorp only analytics synergies Commercial banking ecosystem
Slide 29: Seamless digital customer journey
We are building a seamless digital customer journey 1 Acquisition 2 Transaction 3 Financing 4 Post sales Digital account Web and mobile banking AVI chatbot 90 % Digital customer acquisition 66 % Digital transactions 40 % Self service
Slide 30: Accelerating growth in SME digitally
18 1 18 x 1Q22 vs. 1Q18 Accelerating 1Q18 1Q22 growth in SME SME customer acquisition (th) digitally based ~1,600 on data-driven models 400 4x 1Q22 vs. 1Q18 1Q18 1Q22 SME deposits (S/ mn)
Slide 31: Increasingly involved in green & sustainable financing
160 60 Increasingly (US$ mn) Syndicated (US$ mn) Green medium involved in sustainability loan (Lead arranger) term loan (Structurer) green & sustainable financing 20 (US$ mn) Syndicated sustainability loan (Structurer)
Slide 32: We help our customers grow sustainably
We help our customers grow their businesses in a sustainable way
Slide 33: Retail banking
Commercial banking Retail banking Data & analytics
Slide 34: Strong market shares in targeted retail businesses
Consumer Mortgage 60% 19% MS retail loans Consumer 21 Loans (S/ bn) Strong Retail loans market shares 22% 29% in targeted 22% MS consumer 29% MS credit retail businesses cards 24% 15% MS MS payroll mortgages loans Local GAAP as of March 31, 2022 Credit cards market share under internal segmentation
Slide 35: Sustained growth in deposits despite financial stores reduction
15 % MS deposits 1Q22 Sustained 15 % CAGR 10 % CAGR growth in 22 149 deposits despite 14 108 financial stores reduction 2018 1Q22 2018 1Q22 Interbank System Deposit balances (S/ bn) Local GAAP as of March 31, 2022
Slide 36: Active listening to boost engagement and NPS
Digital Total Non digital 45 48 49 37 39 39 33 23 37 25 Active 23 22 listening 2019 2020 2021 1Q22 to boost NPS (Pts) engagement On the spot and NPS 1 feedback with our customers 2 Adding new analytical tools Identify main Recognized as 3 needs, goals & motivations, close the loop 4 best banking bra
Slide 37: Clear strategic priorities in retail banking
1 Digital only customer experience 2 Personalized and contextual interactions Clear strategic priorities in retail banking 3 Focus on consumer finance 4 The best payments ecosystem
Slide 38: Seamless digital customer journey with clear segmentation
…with a clear We have segmentation built a seamless digitalto design ad hoc value customer propositions journey… 1 Acquisition 2 Onboarding 3 Development 4 Loyalty 5 Retention New customers Digital users Engagement Principality MAU % Digital acquisition Product use Cross-sell Churn
Slide 39: 100% digital solutions
… with 100% digital solutions Digital bank ERNI Digital Loyalty insurance program My finances Payments Piggy Digital Bank 100% digital financing account
Slide 40: 100% digital accounts
100% digital accounts Easy onboarding for new customers ~60% or 310k accounts opened digitally (1Q22)
Slide 41: Digital financing
Digital financing Fast and frictionless product offer 16k Number of digital loans (1Q22) 2.5x YoY growth in digital loan balances (1Q22)
Slide 42: Piggy bank
Piggy bank A simple and friendly way to save 40% Penetration in digital customers (1Q22) 38% YoY growth in loan balances (1Q22)
Slide 43: My finances
My finances An interactive functionality to promote financial education 585k Users (1Q22) 26% Penetration in digital customers (1Q22)
Slide 44: Interbank Benefit
Interbank Benefit Unique and convenient benefits program 441k Customers (1Q22) 24% YoY growth in customers (1Q22)
Slide 45: Open banking
We offer contextual financial services were our customers need us Growth/Lending Savings Investments Bill payments Crypto Open banking +40 Partners +1 mn Annual transactions Realizar Suscripción S/ 25,000.00
Slide 46: Digital approach accelerating customer acquisition
Our digital approach has allowed us to accelerate customer acquisition… Digital Tunki 4.7 67% 3.4 37 % 11% 2019 1Q22 2019 1Q22 Customers (mn) Digital acquisition 65% 3.2% 2.1% 25% 2019 1Q22 2.6x 1Q19 1Q22 -34% Digital customers Churn 1Q22 percentage of digital customers under new methodology
Slide 47: Boosting the use of our digital channels
Total trx Mar19 Mar22 YoY growth +385% -69% -27% +41% …boosting the Monetary trx per active customer & channel use of our 61% digital 94% channels… 30% 79% 2018 1Q22 2018 1Q22 Digital sales Digital transactions Digital sales & transactions
Slide 48: Optimizing our physical footprint
… and optimizing our physical footprint 290 5,820 177 ~40 % 3,144 85% 2016 May22 2016 May22 Financial stores Correspondent agents 793 434 576 ~30 % 375 16 % 2016 May22 2016 May22 Sales force Inbound call center
Slide 49: Digitalization strategy has improved retail profitability
Our digitalization strategy has improved profitability in the retail segment Growing Improving Increasing customer cross operating base sell leverage 1 2 3 +19% 1Q22 YoY +22% 1Q22 YoY +3x 1Q22 YoY growth customers products sold in revenues vs costs
Slide 50: Data & analytics
Commercial banking Retail banking Data & analytics
Slide 51: Strengthening technology, data sources and analytical talent
We are strengthening our technology, data sources and analytical talent Model factory External Upskilling data Internal Hyper-specialization data 1st 2nd 3rd gen gen gen Agile mindset Low-code feature store Global talent Technological Intercorp Analytical evolution data talent
Slide 52: Deep understanding of Peruvians
Marketing analytics Deep understanding of Peruvians Risk based on advanced analytics Collections 3 areas of strategic focus
Slide 53: Personalization
Experiences Real-time offers with Machine learning - driven recommendations Personalization Optimization Real-time We anticipate the needs of our Comparte con las personas que más quieras los customers with beneficios de tu tarjeta de crédito Focus on AI-driven digital experiences personalized & tim
Slide 54: Contextual customer knowledge
customer knowledge Digital delivery and customer feedback 360° ML driven credit offers Contextual The best assessment of our customers Our systematic approach to analytics risk profile 2x 1.5x Contextual RT and NRT Number % labor force offers of risk eligible for models credit 2018-2021
Slide 55: Digital journey for collections based on analytics
+7pp 4x 46 th New Collections Machine self-served models’ learning digital collection We have Gini index driven models customers developed a Focus on end-to-end personalized digital journey & self-served digital collections for collections based on analytics 2.2x Customer 24/7 self service through C
Slide 56: Becoming the digital ally of Peruvians
We are working to become the digital ally in the hearts and minds of Peruvians
Slide 57: Takeaways Banking
1 Universal bank with strategic focus on retail & consumer finance 2 Growing customer base digitally with improving NPS Takeaways 3 Creating a seamless digital customer journey for retail & commercial clients Banking 4 Boosting the use of digital channels and reducing physical footprint 5 AI-first s
Slide 58: Creating the largest payments ecosystem
3 Creating the largest payments ecosystem
Slide 59: Making buying and selling easier
We are changing what doesn’t make sense to make buying and selling easier
Slide 60: Izipay will enhance our payments ecosystem
Izipay will enhance our payments ecosystem… Fast growing and Leader in card- 1 profitable payments company 2 present transactions processing Large growth 3 4 Will complement its opportunity in value proposition with e-commerce, lending IFS’ product suite & additional services Operating synergies 5 i
Slide 61: Izipay: fast growing and profitable operation
… with a fast growing and profitable operation 726 353 118 434 139 49 2020 Apr22 2020 LTM 2020 LTM Apr22 Apr22 1.7x 2.5x 2.4x Merchants (th) Transactions (mn) EBITDA (S/ mn)
Slide 62: Izipay: leading player in acquiring
Izipay Leading player in the acquiring Only player Expanding Payments e-commerce business owning an acquiring and and financing aggregated business services Float, fee income & net interest income
Slide 63: Growth initiatives for the largest payments ecosystem
Our accelerated growth initiatives are focused on creating the largest payments ecosystem Customers Merchants Digital wallet Mobile P2P & P2MB payments network Merchant acquiring Pay everywhere, Grow your e-commerce & Credit & debit with your BNPL solutions business with cards mobile phone our solut
Slide 64: Five strategic priorities
1 Grow number of customers and transactional volumes 2 Replace cash We have five strategic priorities 3 Grow e-commerce transactions 4 New sources of data 5 Financing and aggregated services for merchants
Slide 65: Payments ecosystem targets all market segments
Our payments ecosystem targets opportunities in all market segments Corporate Commercial lending App Retail SMEs Micro & merchants Unbanked
Slide 66: Three building blocks with clear sources of value
Three building blocks with clear sources of value 3 Financing Net interest income customer engagement Increased 2 Payments + e-commerce Fee income 1 Growing customer base Float
Slide 67: Tunki: our digital wallet
Tunki Our digital wallet and point of entry to the Simple user Day-to-day experience Mobile Mobile top-ups, Micro Micro unbanked… payments connected to Plin billtop ups payment, cash out loans Engagement, Float, fee float, income fee&income & interest net interest income income
Slide 68: Tunki already posting attractive growth
… already posting attractive growth 409 1.9 1.9 1.1 113 0.4 May21 May22 May21 May22 May21 May22 2x 4x 5x Users (mn) Merchants (th) Transactions (mn)
Slide 69: Plin: P2P & P2MB payments solution
Plin Our P2P & P2MB and Interoperability with multiple financial institutions QR code payments solution… Seamless payments Replaces cash Monetization at merchant experience POS Engagement & float
Slide 70: Plin with more than 7 million users
… with >7 million users 7.2 ~1 10.1 1.1 ~0.1 0.4 May20 May22 May20 May22 May20 May22 6.5x 10x 25x Users (mn) Merchants (mn) Transactions (mn)
Slide 71: CIMA: 100% digital financing for merchants
CIMA 100% digital 1.6K clients and growing financing for merchants Based on POS 100% Immediate transactional digital disbursement information Engagement & net interest income
Slide 72: Divídelo: buy now pay later
Divídelo A buy now Easy way of financing at over 20 e-commerce businesses and growing pay later solution For Preferential Available for customers rate with a credit cards and non- fixed fee customers Engagement & net interest income 72
Slide 73: Shopstar: e-commerce platform for IFS
Shopstar Best value proposition for IFS customers An e-commerce Special platform for IFS discounts for IFS Pay with miles (Interbank BNPL (Dividelo) customers Benefit) customers 250 2x 28 (1.6x) Sellers visits GMV (S/ mn) Engagement & net interest income 5M22 YoY change for visits 5M22 GMV
Slide 74: Rappibank: our alliance with Rappi
100% digital Rappibank financial products Our alliance with Rappi 66K S/ 39 mn 60 pts Credit cards Credit cards NPS Engagement & net interest income As of March 31, 2022
Slide 75: Takeaways Payments
1 Izipay enhances our payments strategy 2 Only player owning a fast growing and established acquiring business Takeaways Payments 3 Increase customer engagement with clear sources of value 4 Payment solutions targeting bancarization 5 Clear path to financing and aggregated services
Slide 76: Trusted and profitable wealth management advisor
4 Trusted and profitable wealth management advisor
Slide 77: Helping clients build their future well-being
We help our clients build their future well-being so they can enjoy the present
Slide 78: Top advisor for Peruvian HNWI & affluent customers
Deep 1 Proximity and availability 2 understanding of customers’ needs Structured Top advisor 3 4 Leverage IFS advisory platform process for Peruvian Strategic advantages HNWI & affluent customers Our locations
Slide 79: Inteligo in numbers
Inteligo in numbers 20 AUM 14% MS mutual <35 % C/I 23% (S/ bn) funds ratio ROE 4 HNW clients 76 NPS ~10 % ROIP (th) As of December 31, 2021
Slide 80: Efficiency and revenue diversification resulting in sustained profitability
Efficiency and revenue diversification resulting in sustained profitability Diversified Superior Sustained sources of revenue efficiency levels high ROE NII Fee income Other 447 35% 20% 307 32% > 2018 2021 2018 2021 Revenue composition (S/ mn) C/I ratio ROE 2018-21 avg.
Slide 81: Future growth driven by a clear strategy
Future growth driven by a clear strategy “Phygital” & Data New omnichannel enablement client pool
Slide 82: Integrated RM and digital advisor ecosystem
We operate an integrated RM and digital advisor ecosystem… 1 Product / Factories 2 Data & tech 3 Channels Investment Client digital RM, portfolio & client opportunities behaviour management tools (CRM) Client insights Client financial tools (Web/App based) engine Tailored Direct marketing Open archi
Slide 83: Convenient digital financial solutions
… with convenient digital financial solutions Guided Client Portfolio Flexible architecture insights healthcheck investments
Slide 84: Use of data to untap productivity and efficiency
The use of data is allowing us to untap productivity & efficiency opportunities… -50 bps Churn reduction Customer lifetime value > 2x Leads generation Next best action > 1.5x Addressed SoW opportunity Pricing optimization Improved performance metrics Data models pipeline 2021 YoY growth
Slide 85: Targeting a regional client pool
… which will enable us to target a regional client pool LatAm PB TAM ~US$ 13 tn Investment products & advice for affluent IFS clients Geographic diversification ‘Low touch’ approach Countries where WM client needs not fully addressed IFS digital channels integration Inteligo assets: acquisition, adv
Slide 86: Takeaways Wealth Management
1 Premier Peruvian WM provider Proximity, deep client knowledge 2 and advisory process with solid results Takeaways 3 Building a technology-enabled advice-led service model Wealth Management 4 Leveraging data as a key asset 5 Sustained high ROE 6 Opportunities for growth in Peru and LatAm
Slide 87: Highly efficient insurance business with focus on life & annuities
5 Highly efficient insurance business with focus on life & annuities
Slide 88: Making it easier for Peruvians to move forward
We make it easier for Peruvians to safely move forward
Slide 89: Interseguro in numbers
Interseguro in numbers 23% CAGR 2019-21 32% MS #1 Largest >20 % Gross premiums annuities investment portfolio ROE <1 % Expenses / Assets 53% 2 Customers Digital sales ratio growth (mn) As of December 31, 2021
Slide 90: Fast-growing industry still underpenetrated
Fast-growing industry still underpenetrated 14 % 4% CAGR 2018-21 3% Premiums/GDP (%) 9 2% 6 1% 0% 2018 2021 0 3 6 9 12 15 … 65 Life industry premiums (S/ bn) Per Capita GDP (th) Source: Swiss Re, World Bank, insurance regulator Premiums/GDP as of December 31, 2020
Slide 91: Strategically focused on profitable segments
Life P&C 91% 52% Life Life Strategically focused on Interseguro Industry Total premiums breakdown profitable Annuities Individual life Private annuities Other insurance life insurance segments… 50% 19% Annuities Annuities Interseguro Industry Life insurance premiums breakdown Local GAAP as of March
Slide 92: Fast growth rates
+ 23 % CAGR 2019-21 Gross premiums Retail insurance … with Individual life Private annuities 1,271 Annuities fast growth 836 246 182 rates 239 277 136 178 565 283 2019 2021 Gross premiums (S/ mn) Local GAAP as of December 31, 2021
Slide 93: Market leader in annuities
32 % Interseguro Comp 1 Comp 2 MS annuities 2021 Comp 3 Other Market leader in annuities As of December 31, 2021 MS of regulated annuities
Slide 94: Largest investment portfolio
S/ 14 Interseguro’s investment bn portfolio 2021 We manage the 14 largest 13 13 investment 7 portfolio in the industry… Interseguro Comp 1 Comp 2 Comp 3 Investment portfolio (S/ bn) Local GAAP as of December 31, 2021
Slide 95: Highest ROIP among competitors
+50 ROIP 2017-21 avg. bps Interseguro vs. Industry … with the 7.1% 6.4% 6.1% highest ROIP Industry: 6.6% among our competitors… Interseguro Comp 1 Comp 2 ROIP 2017-21 avg. Local GAAP as of December 31, 2021
Slide 96: Best efficiency levels
0.8 % Interseguro’s Expenses / Assets 2021 3.5% … as well as the Industry: 3.2% 2.5% best efficiency levels 0.8% Interseguro Comp 1 Comp 2 Expenses/Assets (%) Local GAAP as of December 31, 2021
Slide 97: Consistently delivering profitability above peers
2x ROE 2017-21 avg. Interseguro vs. Industry Consistently 25% delivering 17% profitability 10% Industry: above peers 13% Interseguro Comp 1 Comp 2 ROE avg. 2017–21 (Local GAAP) As of December 31, 2021
Slide 98: Building the best customer journey
1 Vision: Preferred digital insurance company for We are building convenience the best customer journey with simple & 2 Active listening to improve customer experience convenient products 3 Data driven organization as a competitive advantage
Slide 99: SOAT: becoming digital boosts growth
In SOAT, 15 % CAGR 2018-21 SOAT premiums becoming digital 80% 61% has proven to 45% boost growth 2018 2019 2021 11.1% 13.9% 18.7% MS SOAT digital sales (%) Market share of number of certificates
Slide 100: Delivering the highest profitability in SOAT
46% #1 SOAT: Most profitable company in 2021 …while delivering 34% the highest 24% profitability Interseguro Comp 1 Comp 2 SOAT technical result (%) Source: SMV
Slide 101: Vida cash gaining relevance in life business
23 % Vida cash (% of Life premiums 2021) Vida cash Individual life Vida cash (Digital) 57 gaining 13 relevance in life business 22 44 2019 2021 Life premiums (S/ mn)
Slide 102: Digital sales boosted growth
64% CAGR 2019-21 Digital premiums Digital sales, 62 boosted 41 Interseguro’s 23 growth 2019 2020 2021 Digital premiums (mn)
Slide 103: Strengthening the use of data and analytics
Campaigns contactability Purchase propensity Loss risk We are strengthening Churn retention the use of Segmentation experience data and analytics 1.7mn 2.3mn 1.4mn Emails Customers Prospects 3.2mn Phones
Slide 104: Takeaways Insurance
1 Focus on fast growing and highly profitable segments 2 Largest investment portfolio in the industry with the highest ROIP Takeaways Insurance 3 Highly efficient operation 4 Consistently delivering profitability above peers 5 Building the best digital customer journey with simple products
Slide 105: The best financial player for sustainable growth & profitability
The best 6 financial player for sustainable growth & profitability
Slide 106: Growth, Diversification, Profitability
Growth Diversification Profitability Goals
Slide 107: Expanding our customer base
+16% YoY growth 1Q22 We are 5.6 expanding our customer 3.6 4.2 base… 2018 2019 1Q22 IFS’ customers (mn)
Slide 108: Clear path to sustainable profitability
…with a clear path to sustainable profitability… Sustainable profitability → Float → Interest income → Fee income Lower → Inv. income marginal → Plin cost → My Finances → Loyalty programs Higher → Acquisition costs → Shopstar revenue → Cost to serve → Digital solutions Higher → Less financial stores
Slide 109: Solid business growth
… resulting in solid business growth 43 26 23 +10% Loans (S/ bn) CAGR 2014-21 9 +16% CAGR 2014-21 Investments (S/ bn) 2014 2021 2014 2021 66 90 31 +11% Deposits (S/ bn) CAGR 2014-21 40 +12% CAGR 2014-21 Assets (S/ bn) 2014 2021 2014 2021
Slide 110: Diversified sources of earnings
4 Key businesses Wealth Payments Banking Insurance mgmt. Starting 2022 Diversified sources of earnings... 1.0 0.8 1.8 2014 2020 2021 IFS’ earnings (LG/IFRS, S/ bn)
Slide 111: Focus on specific businesses
Main area of focus 55% 91% Retail Life banking insurance Loans banking Gross premiums insurance …with focus on specific businesses… 44% 74% Fee Acquiring income fees Revenue wealth mgmt. Revenue payments As of December 31, 2021 Loan excluding Reactiva Peru loans
Slide 112: Balanced risk profile
1.8 % Banking CoR 2018-21 avg. ~160 % Banking cov. ratio 2018-21 avg. …and a ~3.0 >200 balanced risk profile ~100 <1.0 CoR Coverage ratio Retail Commercial Excluding 2020
Slide 113: Focus on a profitable loan portfolio
12.6% 8.3% 3.9% Total Retail Commercial Focus on a 1Q22 yield on loans (%) profitable 4.5% loan portfolio 3.6% NIM Risk-adjusted NIM 1Q22 NIM and Risk-adjusted NIM – Banking (%)
Slide 114: Solid returns on investment portfolio
Solid returns on investment ~6% ~ 10% portfolio Insurance Wealth management 2019-21 avg. ROIP (%)
Slide 115: Best in class efficiency levels
35% ~ IFS’ C/I ratio 2021 Best in class efficiency levels 45% < <15% < 35% Banking Insurance Wealth management
Slide 116: Solid capital ratios
> 15% ~ 11% TCR CET1 Banking Solid Banking capital ratios > 150% > 25% Capital ratio Solvency ratio Wealth Insurance management As of March 31, 2022
Slide 117: Track record of strong returns
~ 19% IFS’ ROE 2019-21 avg. Incl. Holdco Track record of strong returns 21% 21% 24% Banking Insurance Wealth management Excluding 2020
Slide 118: Sustainable earnings & dividend distribution
+10% CAGR 2014-21 Sustainable 1.8 earnings 1.5 & dividend 0.9 distribution 2014 2019 2021 IFS’ earnings (S/ bn) Dividend per 1.60 1.75 1.75 share (US$)
Slide 119: Our goals
Our + 10mn ~ 18% goals Customers ROE < 35% ~ 11% ~ 70 Efficiency CET1 CSA score
Slide 120: Building a leading digital financial platform
1 2 3 Building A distinctive Creating the a leading way of largest payments digital financial banking ecosystem platform 4 5 6 Trusted & Highly efficient The best profitable insurance financial player wealth business with for sustainable management focus on life & growth and advisor annuities profit
Intercorp Financial Services — Investor Day (June 2022) on 6ix